Financing the Future: Assessing the Role & Prospects of Green Finance in India’s Sustain Ability Agenda

Abstract

This research paper is on green finance as a crucial tool for achieving sustainable development in India. Green finance acts as a vital link, channeling investment toward environmental conservation and broader economic growth.The study's primary objective is two-fold:first,to define the concept of green finance a system of market-based investment and lending that integrates environmental risk analysis into financial decisions; and second, to assess its viability within Indian industries as a mechanism for offsetting ecological damage, particularly carbon emissions.Beyond conceptual validation, the paper investigates the current developments, future prospects, and obstacles facing green finance in India. Green investing is framed as acknowledging the inherent value of natural capital to improve human welfare and ecological health while mitigating environmental risks.The escalating global concerns over climate change, poverty, and social inequality necessitate a focus on sustainable development. The paper addresses this by discussing the concept, dimensions, principles, and strategies of sustainable development specific to the Indian context. It enumerates government initiatives, including the National Action Plan on Climate Change (NAPCC) and the Sustainable Development Goals (SDGs) under Agenda 2030. Finally, it analyzes India's SDG Index prepared by NITI Aayog to highlight state-level achievements and offer policy suggestions for meeting national sustainability targets.